2 Brothers Accused of Insurance Fraud Over Helicopter Claim

The operators of a North Hollywood export firm, already under federal indictment charging that they sold helicopters to North Korea, have been indicted on charges of collecting $250,000 in an insurance scam.

Two brothers, Ronald H. Semler, 43, of Malibu, and Monte Barry Semler, 40, of Santa Barbara, owners of Associated Industries, are accused of obtaining $250,000 from their insurance company after claiming that three helicopters temporarily seized by the Nigerian government in 1981 were substantially damaged, the three-count indictment claims.

The men told their insurer that they sold the helicopters at a substantial loss. But federal prosecutors allege that the businessmen actually sold them for $250,000 to a West German company, Delta Avia, that they secretly owned.

The brothers were indicted Thursday on two counts of mail fraud and one count of interstate transportation of property obtained by fraud.

The new charges are unrelated to a 27-count indictment announced by a Los Angeles federal grand jury in January. In that case, which is scheduled for a December trial, prosecutors contend that the men violated the U.S. Trading With the Enemy Act by agreeing to sell more than 100 Hughes helicopters to North Korea.

The Semlers entered into a contract with the North Koreans worth more than $40 million and stood to make a profit up to $10 million, prosecutors said. The North Koreans allegedly received 87 helicopters plus spare parts and tools between 1983 and 1985. A shipment of 15 others was stopped by authorities.

The indictment said the helicopter deal was negotiated and carried out by Kurt Behrens at the direction of the Semlers. Behrens, a Dane living in West Germany, managed Delta Avia and was a minority owner, the indictment stated. Behrens was not charged.

Federal prosecutors said they hope to consolidate the indictments into one trial.

The Semlers’ attorney, Vincent J. Marella, could not be reached for comment.